G7 emergency meeting on oil as markets sink

Published: 9 March 2026

The English Chronicle Desk

The English Chronicle Online — Business & Economy

Global financial markets were thrown into turmoil on Monday as oil prices surged to their highest levels in years, prompting the Group of Seven (G7) nations to call an emergency meeting to address the rapidly escalating energy crisis. The meeting, set to take place later today, comes amid deepening instability in the Middle East following the US‑Israeli war with Iran, a conflict that has already disrupted vital energy infrastructure and halted shipping through one of the world’s most important oil routes.

The urgency of the situation was underscored by dramatic movements in global markets. Brent crude briefly soared above $119 a barrel in early Asian trading before settling around $107, while US West Texas Intermediate hovered at approximately $104. Gas prices also spiked sharply, with UK month‑ahead delivery contracts jumping nearly 25% at the start of trading. European and Asian stock markets responded with steep declines, reflecting investor anxiety over the potential for prolonged supply disruptions and rising inflation.

The G7 meeting will bring together finance ministers from the world’s leading industrialised economies, including UK Chancellor Rachel Reeves, to discuss coordinated measures aimed at stabilising energy markets. According to reports, one of the key proposals on the table is a joint release of petroleum reserves through the International Energy Agency (IEA). If approved, it would mark the first such coordinated release since 2022, when the West responded to Russia’s full‑scale invasion of Ukraine with emergency energy measures.

The current crisis has been triggered by a series of airstrikes across Iran, including attacks on major oil facilities in Tehran. The strikes, carried out by the United States and Israel, have severely disrupted Iran’s ability to export crude and have heightened fears of a broader regional conflict. Iran has retaliated by targeting energy infrastructure in neighbouring Gulf states, further destabilising the region’s already fragile supply chain. Saudi Arabia confirmed on Sunday that it had intercepted two waves of drones aimed at a major oilfield, underscoring the growing threat to regional production.

The Strait of Hormuz, a narrow waterway through which roughly one‑fifth of the world’s oil supply normally passes, has seen traffic grind to a near halt since the conflict began more than a week ago. The disruption has sent shockwaves through global markets, raising fears of a prolonged energy shortage that could push up prices for consumers and businesses worldwide. Analysts warn that rising inflation could force central banks to delay or reduce planned interest‑rate cuts, complicating economic recovery efforts in multiple countries.

The crisis has also coincided with a major political shift inside Iran. On Sunday, the country named Mojtaba Khamenei as its new supreme leader following the death of his father, Ayatollah Ali Khamenei, in a US‑Israeli strike. The appointment of Mojtaba, a hardline figure with close ties to Iran’s security establishment, has raised concerns that the conflict may intensify rather than de‑escalate in the coming days.

Stock markets across Asia and Europe reacted swiftly to the unfolding crisis. Japan’s Nikkei 225 plunged 5.2%, while South Korea’s Kospi fell 6%, triggering a temporary trading halt under the country’s circuit‑breaker mechanism. In Europe, Germany’s DAX and France’s CAC 40 both dropped around 2.5% in early trading. London’s FTSE 100 also saw widespread losses, with nearly all major stocks falling except for oil giants BP and Shell, which benefited from the surge in crude prices.

Economists say the market reaction reflects growing recognition that the conflict may not be resolved quickly. Adnan Mazarei of the Peterson Institute for International Economics noted that oil production has already been halted in several Gulf countries, and the signs of a prolonged confrontation are becoming increasingly clear. “People are realising that this won’t end quickly,” he said, adding that the assurances offered by the United States about the conflict’s objectives are “becoming more unrealistic.”

US President Donald Trump, however, has downplayed concerns about rising oil prices. In a post on his Truth Social platform, he argued that short‑term price spikes were a “very small price to pay” for eliminating what he described as the “Iran nuclear threat.” He insisted that prices would fall rapidly once the conflict’s objectives were achieved. Meanwhile, US Energy Secretary Chris Wright told broadcasters that Israel, not the United States, was responsible for targeting Iran’s energy infrastructure, amid growing domestic concern over rising fuel costs. According to data from AAA, the average price of regular gasoline in the US rose 11% last week to $3.32 per gallon.

The G7’s emergency meeting is expected to focus on several key issues: stabilising global oil supplies, coordinating reserve releases, and assessing the broader economic fallout from the conflict. Analysts say the group may also discuss potential diplomatic measures aimed at reducing tensions in the Middle East, though expectations for immediate breakthroughs remain low.

The stakes are high. A prolonged disruption in oil supplies could have far‑reaching consequences for global inflation, energy security, and economic growth. For countries heavily dependent on imported energy — including many in Europe and Asia — the crisis threatens to undermine fragile post‑pandemic recoveries. Businesses already grappling with rising costs may face further pressure, while households could see higher fuel and heating bills in the weeks ahead.

As the G7 prepares to meet, markets remain volatile and uncertainty continues to dominate investor sentiment. The outcome of today’s discussions will be closely watched by governments, businesses, and consumers around the world, all of whom are bracing for the possibility of further turbulence in the global economy.

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